My wife and I were just at a children's birthday party. You know, the kind where everyone gets together to sing "Happy Birthday," and then the adults drift off into their own groups to chat.
Naturally, I fell in with a group of several wealth managers, and you'd better believe we started talking about the markets.
When the subject turned to oil shares, you could have heard a pin drop.
You see, some of those folks could be looking at a mighty lean year, depending on their oil exposure.
But as we know, there's an opportunity to make money as share prices fall. Today I want to show you how to book a quick and easy 30% gain on some very big, very liquid oil shares, even as the stock tumbles down.
It's the perfect energy play for markets like this.
Profit While We Wait for the Oil Bull to Resume
There are always plenty of factors to consider when oil is in a temporary downtrend like this.
But it usually boils down to simple supply and demand. Demand for fossil fuels like oil is still very high, but when a huge consumer like China begins an economic slowdown, there's a knock-on effect throughout the global oil market.
Although output numbers are dropping slowly, there's simply a bit too much oil on the market right now – a few too many tankers sailing the seas and looking for a port.
Now, oil shares will rebound eventually. The Money Calendar, which tracks the best upcoming money-making opportunities in stocks, suggests that the downturn will last another three to five weeks yet, so dedicated oil bulls may want to hang back until after Labor Day. Personally, I like to catch the bull train a little late than hop aboard too early.
About the Author
Tom Gentile is one of the world's foremost authorities on stock, futures and options trading.
With more than 25 years' experience trading stocks, futures, and options, Tom's style of trading systems and strategies are designed to help individual investors propel themselves past 99 percent of the trading crowd.